Ongoing efforts to identify and pursue additional desirable acquisition candidates may further enhance growth in 2008 as we continue to seek to add as much as 3% in overall additional annual revenue growth through acquisition of strategically important products, services, platform technologies, businesses and facilities.
Based on our 2007 achievements, the sales expectations described above,
currency rates remaining at December 31, 2007 levels, the expected pretax
income margin and tax rate described below and other expectations for our
business, we set our initial forecast for diluted earnings per share for
2008 in the range of $2.52 to $2.62, a 7.7% to 12.0% increase over 2007's
$2.34. Pretax income margins for the full year are expected to improve from
the 21.5% achieved in 2007 as the result of modest contributions from the
Company's supply chain initiative and other margin improvement initiatives.
A higher forecasted effective tax rate in the range of 30% to 32% of pretax
income for all of 2008 will likely offset pretax margin improvements. The
effective tax rate for 2008 is expected to increase because of a higher net
international tax level, due to a larger 2007 benefit from changes in our
international organization, and the expiration of the U.S. R&D tax credit.
Reinstatement of the U.S. R&D tax credit currently being considered by the
U.S. Congress would likely drive the tax rate for 2008 to t
|SOURCE Sigma-Aldrich Corporation|
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